A liability is defined in conceptual framework.16 as 1 (1 ) possible obligation of the entity, the settlement of which is expected to result in an outflow from the entity of resources .embodying economic benefits a possible obligation of the entity expected to arise from future events, the settlement of which is expected to result in an outflow from the entity of resources embodying .economic benefits a present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic .benefits a present obligation of the entity arising from past events, the settlement of which is expected to result in an inflow to the entity of resources embodying economic benefits